Whitepaper Aerospace & defence industry

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Thetwntelligent Entérptise for Aerospace and Defense Delivering Tailor-Made Solutions at Scale and asa Service THE BEST RUN SAP Paving the Way for Sustainable Business Model Innovation Global aerosp: due to th will not b however. remai and defense (A&D) revenues have started to recover after the drastic dawnt aslow restoration in the commercial sector and turing perspective will, ain disruptions and geopolitical instability drive and uncertain landscape, A&D corporations irends reshaping the landscape, including: e pandemic. The recovery is being driven by ndustry. Defense p in under pressure as global supply cl While dealing with to industry and g squivalent acros: ma manuf costand si vola must also respo ciety’s biggest challenges. Therefore, * Cybersecurity: Security is vital for the industry and is among the ability to s jesponse to expanding threats will be a critical busi re and pro Fhnical infras ct supply chains, intellectual property and te ucture i ative. ess imp weave tog rid data from customers, connected devices, * Automation: Com and real-v intelligent automation will lead nies th + Sustainability: Purpose and reward are not mutually exclusive concepts in A&D. Turning intentions into momentum followed by dynamic action will require adopting fundamentally c strategies toharness a complex di each the industries’ sustainability goals syster * Talent: Talent acquisition strong competitic ind retention continue &D, exemplifies 4 major concern across for critical skills that are in short supply. SSL Ml Cua uu) Pee ee eee eee ae ee earn eee om er Infact, top-performing companies wil pull away from ther Rin eRe are eae ae e Bu Cee ets, lable inteligent Geeta these organizations Bioveccnt ren to drive innovation, purpose, and profit to deliver winning product ete paar ess en ee Strategies for Aerospace and Defense Companies to Run as Intelligent, Sustainable Enterprises Prove industries and focus on performance-based ie le making iteasier for customer tne. From Best Practices to the Vertical Edge Ina digital world, inr just the domain of the research and development teams that build the next generatior ts. Innovation must be« in integral part of each departmer and discipline so they all contribute to the evolution from best > industry ne ices. right t e." This enables cross-functional te experiment with new snique Cee eater ee eee ee ae) nel Peete ee ena een ea eer pe reeprenearey Po ers eelinieanaeriies oie earn reer em een earner pes Eee Rd Bud supply chain esilence though Enable seating andl ya ety Peet eee met ir er peers einer te eee Semen eter Process arent eee naa et Eas acer See bee teenie Cee tec eae eee cad pecs Tenn Epi aenelinienia teem erm Par oe eee) Petcare rocoscos suchas imo sonstive easieencieatad eee) pesos (ON WAN See ean ced eee! Roe os) bee eerie eet PSs coerce tea rs Poe ete eran pacer Cee ee See eee Cetera Fe eho eee Feeder eee eee eae ere eee eee eh eee Posey iota cer ese tree oe ere spe een een) permits tend the digital thread throughout the enterprise with a focus on business outcomes where ee ee ee et see eee oe Kawasaki Heavy Industries: Der ee age Aa ang ee ee ee ete eee ar tc ea) Cea! De ed ee eee ete pores Nati Customer Centricity he center from both the p vices must provid! performance, and support outcome-oriented service models to re BEST PRACTICE eee Inc er SAP® Solutions: For a Customer-Centric Approach Becoming customer centric means positioning the customer's point of view at every decision — from rogram delivery, to design and build of complex products, and extending into operations ~ to create great experiences at every interaction point. This requires new business capabilities throughout the value chain — provided by the Int Enterprise for A&D. Required Capabilities Business capture Oasigning complex Seetngant (Fama and program o> Saivery SAP arits* Network ieee Intetigént, ust wu comm : nterprise are pen pement ‘lutions from Sab and ‘SAP S/AMANA aici Business process management ana estimating by = for oder toca Tien =o bie ‘SAP Commer centre ious slut saP ie — rates olnning SAP Ansiytes Cous — SAP S/AHANA " Manufacturing ‘App dev Integration Data: eee a eee ete eee cnee! Seca ewes une Digital Business Networks ncreasing customer focus is driving D companies to support the holistic optimization of capai margins, and carbon footprint ac value chain. This is critical for managing the risk and complexity lly distributed supply chai e orchestration across company boundaries, and tter to changing customer demands, disruptions, and market dynamics See ke pcre Soret e aoe eee Reduction of re R CL ae eee eee ae eeenitance eat time Se SAP Solutions: Implementing a Digital Business Network ns such as Combining operation: data inte and exper additive manufacturing and machine learning will help reimagine global resource orchestration across company boundaries. Manufacturers will have the ability to respond faster and more accurately t. y will establish a sustainable, more fluctuating customer demands and a changing workforce, and resilient supply networ Required Capabilities Business capture Designing complex Building complex Responsive supply Aftermarket products products network s with SAP Business Technol sity tan Intelligent, sustainable enterprise SAP Logistics Businses : Eg oe {AP arta eer eee polars Business process management ‘SAP Quality Issue SAP Sustainability Contrel Tower tre Business nctwork Industry cloud Experience management Panning oorees ‘SAP Iterated Business SAP Blockehain Busines Planing ase eatons for Services in onabe me ‘Supe Chain— SAP S/AHANR Integration Dataand analytics Al ee ee ee rr ee ee teen Steere deploying the SAP Ariba Supply Chain Collab¢ eee ce] Ariba Network eee ee eee) eer eae Pee eet ee ee ead Agile Innovation and Manufacturing SAP Solutions: Innovative Manufacturing Agility Agility is realized by repla ng engineering to manufacturing handover with a bidirectior wi ses the engineering model-ba: al thread collaborative tire A&D enterprise and ecosystem. Innovations such as enterprise product analysis, secure logistics, machine fi tional-effic arming, and indu: y focus to an agile busir Required Capabilities ‘Business capture Designing complex Bulling complex Responsive supply Aftermarket service Sourcing and Fiance and HR products ee ‘SAP Aro solutions — Experience Menezemen Business process management from Sar end guates " HoT. ans Attbnaad software SAP S/AHANA for oo Visual Operations eng Inteligence by Copnlac— Quick-start service for ‘Business network Industry coud Experience management. Planning wection product data management Integration forc2 soorston SAP Detabase and Date franesing cyte Menogerent iF iiacaeiyg een analytes ane ‘App dev Integration Dataand analytics Al eee eee eee significant productivity improvements across all industries. This i particularly ete toe s such as GA-EMS, where the Sete eet ion of manufacturing operations ac aa eee oe ened Driving Sustainability Transformation BEST PRACTICE NEXT PRACTICE SAP Solutions: Support the Sustainability Transformation le chain and 1 ability along the v n data in Required Capabilities usiness capture Designing complex ulding complex Responsive supply andprogram products products network Selvery ferprise for the A&D industry st cluding indus d solutions: erase Intelligent, sustainable gence Newer enterprise areas ‘SAP Dighal Mantactring SAP S/AHANA — insights toproves roa SAP Profitelity and Penney Integration Data nd analytics Al ‘Using the SAP Predictive Asset Insights solut Se ea ee ee eee tt a caer Seg eee eet This increases the lifetime value of critical infrastructure assets while reducing eee nee eee See eee ate New Business Models Harnessing massive amounts of loT data across the product lifecycle, managing Big | services, and analyzit nce data - each of these activities allows ting tra ss models are disrt al business m mis cre ng outcomes. They use data as a pr y and profitably manage performance-based contracts fas SE ICEL SECS Se See allet and eae : eet SAP Solution: Transformation to New Business Models industry starts with SAP Busines tions that support organi SAP Asset Intelligent, sustainable Invetigance enterprise ‘App dev Integration Dataand analytics Al Pere ne ene ene ee a SAP Intelligent Asset Management solutions will help us maximize producti eee ee ie! Seater ate eaten ae eet eee A Joint Innovation Space Intelligent, sustainable gle > Industry-specific end-to-end processes Pree ee as Lee a us BCU Eun cucu rea) Business network Industry cloud Experience management _ Planning Eee cece Ey sc Eg Gu ey See eeu een cmrecns teeta eee ee ee ea eee etc eee customers. SAP's industry cloud provides direct access ree ne eas Bet ee ee eet) logy services provide the tools and infrastructure eer sae tec os aos oo eee red DCE Ee Pee ua ea ee eee een Peeters ce teeta Gee eter ogee Mee re eee ne ee rice es automation to artifical inteligence and machine ea ete etn nee ca Open Innovation Platform and Ecosystem SAP's industry cloud is the way for our partners and SAP to deliver industry cloud solutions for customers that unlock new levels of efficiency, extend end-to-end business processes at the edge, and enable innovative business models SAP partners find a unique environment in our industry cloud in which the data domains and business processes of the intelligent suite and our business networks are readily accessible through open APIs. This allows our partners to accelerate innovation by focusing on the differentiating business capabilities they want to build and deliver to our joint customers. This enables a spectrum of partnership and innovation models ranging from close co-innovation over, identified white spaces to completely open innovation spaces with free competition to drive customer value ‘The innovation models are complemented by a set of commercialization models that are strongly correlated to the value the solutions deliver to the business of our customers. Freedom of choice is a key value, so customers can choose from various partners and hyperscalers to deploy their industry cloud solutions. Open Ecosystems Deliver More Innovation Open platforms, available tothe wider ecosystem, have consistently delivered more innovation and choice for customers. Therefore, our industry cloud solutions can be run by major infrastructure-as-a-serviow providers, giving our customers the freedom to implement their own individual platform strategy, RISE with SAP: Driving Business Innovation Together Every eds id being disru Discover the value of RISE with SAP. g oe 1op improving with Secure your business with at us insight to optimize ar forscia hacdeaveey tage 5 processes: ke the lead with industry a ty ine a RISE with SAP i: si & @ @ Business process Business platform Outeome-

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